I wanted to know if it was right on the part of the company to include the contributions made by the Employer to the PF account in the Employees CTC? I was offered a CTC and in the break up all the contributions made by the Employer is also included in it(Gratuity, Medic premium and PF too). Can I question them regarding this?
From India, Bangalore
From India, Bangalore
Hi,
Yes it is right .......
The contributions made by employer to your PF account as well as Gratuity,
Mediclaim, etc all these is a cost to company .Company is spending towards
these heads on you .
CTC = Cost to Company .it is inclusive of everything that a company is spending
on you .
Regards
Rajeev Dixit
From India, Bangalore
111Yes it is right .......
The contributions made by employer to your PF account as well as Gratuity,
Mediclaim, etc all these is a cost to company .Company is spending towards
these heads on you .
CTC = Cost to Company .it is inclusive of everything that a company is spending
on you .
Regards
Rajeev Dixit
From India, Bangalore
Well said Rajeev Dixit !!
CTC (cost to company ) means how much amount company is spending on you throughout the year. It includes each and every amount paid by the company to you or on your behalf like ESI and PF.
But this is ill practice to include gratuity in CTC. It may or may not be given to the employee (clause of 5 years service length). Even after some companies are following this practice.
Chill HR !!
https://www.facebook.com/HRGang
From India, Gurgaon
CTC (cost to company ) means how much amount company is spending on you throughout the year. It includes each and every amount paid by the company to you or on your behalf like ESI and PF.
But this is ill practice to include gratuity in CTC. It may or may not be given to the employee (clause of 5 years service length). Even after some companies are following this practice.
Chill HR !!
https://www.facebook.com/HRGang
From India, Gurgaon
Agreed with Rajeev, only employer share should be counted while designing CTC Salary+EPF(Employer)+ESIC(Employer)+Gratuity cont. + Leave encashment+Mediclaim +any other head expense on employee head.
Thanks & Regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
Thanks & Regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
Dear Mr. atchayapaathiram,
The contributions made by employer to your PF account as well as Gratuity, Mediclaim,LTA, Bonus,ESIC, and any other expense on employee head
Note: Travel Allowance that is submitted by employee(s) against travel bill is not mentioned in your appointment letter because travel allowance is not certain but all the statutory expanses along with salary components spent by employer on employee head is known as CTC (Cost to the company)
Note: Dear Mr. Dixit Thanks for good suggestion and using simple word
Kumar Malay Kishor
From India, Ranchi
The contributions made by employer to your PF account as well as Gratuity, Mediclaim,LTA, Bonus,ESIC, and any other expense on employee head
Note: Travel Allowance that is submitted by employee(s) against travel bill is not mentioned in your appointment letter because travel allowance is not certain but all the statutory expanses along with salary components spent by employer on employee head is known as CTC (Cost to the company)
Note: Dear Mr. Dixit Thanks for good suggestion and using simple word
Kumar Malay Kishor
From India, Ranchi
I also endorse the responses by Rajeev ji, Chill HR and Sumit ji.
Further I would suggest, when an interview candidate negotiate with the prospective employer for his package and the prospective employer talk about the package in terms of CTC which includes the PF ER share, Gratuity etc., the interview candidate also should talk about his current emoluments in terms of CTC which includes the PF ER share, Gratuity etc.
From India, Mumbai
Further I would suggest, when an interview candidate negotiate with the prospective employer for his package and the prospective employer talk about the package in terms of CTC which includes the PF ER share, Gratuity etc., the interview candidate also should talk about his current emoluments in terms of CTC which includes the PF ER share, Gratuity etc.
From India, Mumbai
Thank you all for your suggestions. Hope to be more careful and proactive when going for the next interview. So NOW THERE IS NOTHING THAT I CAN BARGAIN? I have received my first salary!!
From India, Bangalore
From India, Bangalore
Dear Mr. atchayapaathiram, Congratulates for your new job and wish you happy and bright future
From India, Ranchi
From India, Ranchi
Gratuity is calculated as 15 days salary for every completed year of service, (period above six months is treated as one full year). for arriving daily salary divide basic pay + DA(if given) with 26. i.e (Basic +DA)/26*15*No of completed year of service. Also note this is paid only after completion of 5 years.
Regards
From India, Hyderabad
Regards
From India, Hyderabad
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Employer-PF-res trict to wages of Rs 6500.pdf